Venture Capital Policy Review: United Kingdom

Günseli Baygan

No 2003/1, OECD Science, Technology and Industry Working Papers from OECD Publishing

Abstract: Despite high levels of private equity financing in the United Kingdom, relatively little funding is reaching small, technology-based companies. Institutional investors, both domestic and foreign, remain focused on later-stage deals. The United Kingdom has implemented several policy initiatives to improve the access of small firms to equity financing, including generous tax incentives and support for business angel networks. However, problems persist in targeting financing to smaller enterprises, start-ups and outlying regions. A new policy approach, which follows the example of the United States, has recently been introduced. This combines government equity with private sector management to leverage private financing for small deal sizes and also eases rules on institutional investors. This paper analyses trends in UK venture capital markets and makes policy recommendations which have been developed through an OECD peer review process ...

Politiques de capital-risque au Royaume-Uni Malgré le niveau élevé d’investissement privé par prises de participation qui prévaut au Royaume-Uni, l’apport de capitaux aux petites entreprises de technologie est relativement peu abondant. Les investisseurs institutionnels tant nationaux qu’étrangers continuent d’intervenir en priorité dans les dossiers d’entreprises plus matures. Le Royaume-Uni a mis en œuvre différentes initiatives visant à améliorer l’accès des petites entreprises au financement par prises de participation, dont des dispositifs généreux d’incitation fiscale et le soutien de réseaux d’investisseurs providentiels (business angels). Il reste toutefois difficile d’axer les financements sur les PME, les jeunes entreprises et les régions excentrées. Une nouvelle stratégie inspirée de l’exemple américain a récemment été mise en œuvre. Elle conjugue apport de capitaux publics et gestion privée pour attirer des financements privés au profit de petits projets, et assouplit le régime applicable aux investisseurs ...

Date: 2003-01-28
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